DeFi Protocol Loopscale Halts Activity After Attack Campaign Hits Genesis Vaults

Loopscale, a decentralized finance lending protocol operating on Solana, has suspended activity after a sustained attack campaign targeted its Genesis Vaults. The attacks focused primarily on its SOL and USDC Genesis Vaults, prompting the protocol to pause operations while investigating the activity. 

However, the team has not provided a specific timetable for restoring normal operations. This indicates that security considerations remain its immediate priority. 

Loopscale Suspends Operations 

The decision to suspend activity followed a surge in suspicious requests that placed pressure on the protocol’s security infrastructure. According to Loopscale, the campaign intensified over the past week, with attackers directing more than 30,000 malicious requests daily toward its APIs. 

Rather than risk further exposure, the team restricted access while investigating the source and scope of the activity. Loopscale also published four addresses associated with the attacks. Although the incident raised concerns among users, Loopscale confirmed that the affected vaults had been replenished and deposited funds remained secure. 

The team is now working with security specialists and law enforcement. They also mentioned plans to restore access to its protocol interface, with repayment functionality receiving particular attention.

Previous $5.8 Million Exploit Adds to Security Concerns

The latest incident brings renewed attention to Loopscale’s security history, particularly its $5.8 million exploit in April 2025. During that attack, an exploiter manipulated collateral price information through an oracle-related vulnerability, allowing improperly valued assets to support substantial borrowing. The attacker stole about $5.8 million in USDC and SOL from the protocol, forcing Loopscale to suspend affected markets and begin recovery efforts. 

The incident exposed the risks of relying on external price information to determine collateral values in decentralized lending systems. Loopscale subsequently recovered the stolen assets through negotiations, allowing affected depositors to avoid permanent financial losses.

Since its launch, Loopscale has sought to establish itself as a lending marketplace within Solana’s growing decentralized finance ecosystem. Its Genesis Vaults provide liquidity for lending activities, connecting depositors seeking returns with borrowers accessing digital assets. 

However, repeated security disruptions can undermine the confidence such platforms need to attract and retain users. Meanwhile, as investigations continue, Loopscale must show its infrastructure can withstand further attacks before users return to normal activity.